Bitcoin for businesses [BFC] has formally urged MSCI to withdraw its proposed digital asset exclusion rule, arguing that it risks removing dozens of legitimate companies from major global indexes simply because they have Bitcoin or other crypto assets on their balance sheets.
The proposal currently under consultation would allow MSCI to exclude any operating company from its Global Investable Market Indexes if digital assets represent 50% or more of total assets.
According to industry estimates, this threshold would put as many as 39 listed companies at risk of reclassification or delisting.
Corporate bonds challenge the classification of ‘funds’
said BFC the rule incorrectly classifies operating companies as ‘fund-like’ based solely on the composition of government bonds, even if their core businesses – such as mining, infrastructure, software or gaming – remain unchanged.
Companies such as Strategy, MARA Holdings, Hut 8, Metaplanet and SharpLink Gaming are among those potentially affected.
BFC states that a company’s choice to hold Bitcoin as treasury bills should not redefine its underlying business model or disqualify it from broad market representation.
Concerns about the selective treatment of assets
Critics claim the proposal focuses on digital assets while leaving other major balance sheet risks unaddressed.
Companies that hold 50% of their assets in real estate, cash or commodities will not face a reclassification, raising concerns that the rule focuses on a single asset class.
Bitcoin For Corporations also warned that tying an index’s suitability to volatile asset prices could cause unpredictable index movements, leading to passive outflows and higher costs of capital without reflecting underlying operating performance.
What comes next
MSCI has not yet made a final decision. The company is still consulting with market participants and industry groups are expected to submit comments before the review period closes.
If implemented, the rule could force index deletions driven by balance sheet composition rather than business fundamentals – an outcome that BFC says would undermine index neutrality at a time when more and more companies are exploring digital asset strategies.
Final thoughts
- BFC urges MSCI to withdraw its proposal due to concerns over classification and index neutrality.
- Up to 39 companies could be affected if the 50% threshold for digital assets is adopted.